Tungsten West PLC has announced a significant eight-year supply and offtake agreement with Elmet Technologies LLC, a US-based producer of tungsten products. This agreement establishes a major tungsten supply relationship between the UK and the US, with Tungsten West set to supply Elmet with 1,000 tonnes of contained tungsten trioxide (WO₃) annually from its Hemerdon mine in Devon, UK. The deal is valued at over £1.4 billion at current market prices and is designed to support both UK and US strategic industries, including defence and advanced manufacturing.
The agreement is part of the UK Government’s Critical Minerals Strategy, which aims to strengthen economic security and build resilient supply chains for critical minerals. Blair McDougall, the UK’s Minister for Reindustrialisation, highlighted the partnership’s importance in ensuring that crucial sectors in both countries receive the minerals they need. The deal also aligns with the UK Government’s recent investment of up to £71 million in Tungsten West, which includes an exclusive negotiation period for the UK to procure up to 50% of Hemerdon’s annual tungsten production.
Jeffery Court, CEO of Tungsten West, described the agreement as a landmark commercial milestone that positions Hemerdon as a vital source of tungsten for the Western world. The agreement not only secures a long-term supply relationship with Elmet but also creates the potential for an additional 500 tonnes of WO₃ to be processed annually to meet UK Government strategic requirements. This positions Hemerdon as a key player in the supply of critical minerals, particularly at a time when both the UK and US are prioritising the security of their mineral supplies.
Elmet Group’s CEO, Peter V. Anania, emphasized the agreement’s role in building a resilient supply chain for the US and allied nations, further supported by a US$450 million investment from the US Department of War. The partnership aims to secure domestic production and consistency for customers across various critical end markets, reinforcing the strategic importance of tungsten in sectors such as aerospace and defence.
Overall, this agreement marks a significant step forward for Tungsten West and the UK’s strategic mineral supply chain, enhancing the resilience of both nations’ access to essential materials needed for advanced manufacturing and defence applications. As production at Hemerdon ramps up, the collaboration with Elmet is expected to play a crucial role in meeting the growing demand for tungsten in the Western market.
